Banking giant Goldman Sachs is reportedly saying that the most recent crypto market crash had next to no impact on the financial well-being of US consumers.
According to a new report by Bloomberg, economists at Goldman Sachs say that the latest crypto correction is “very small” compared to the overall net worth of US households, which in 2021 was at $150 trillion.
In comparison, the crypto markets dipped from $2.3 trillion to $1.3 trillion during the latest sell-off.
The economists also expect that the crypto bear market will have a limited impact on aggregate spending even though Americans own a third of the global crypto markets.
Says a panel of economists led by Jan Haztius as cited by Bloomberg,
“We therefore expect any drag on aggregate spending from the recent declines in cryptocurrency prices to be very small as well.”
According to the banking giant, crypto accounted for only 0.3% of US household net worth by the end of last year. In contrast, the equity market represented 33% of household net worth at the end of 2021.
“These patterns imply that equity price fluctuations are the main driver of changes in household net worth, while cryptocurrencies are only a marginal contributor.”
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Source: https://dailyhodl.com/2022/05/22/crypto-carnage-to-have-minimal-impact-on-us-consumers-according-to-goldman-sachs-report/